Early Retirement Health Insurance Options: A Comprehensive Guide

If you are fortunate enough to be able to retire before the age of 65, you will need to consider early retiree insurance options for health coverage. If you are retiring early, you should know that Medicare coverage is not available until you are aged 65 in most cases.

If you had coverage under a group plan through your employer, you may be able to keep the coverage for a short period after retirement. Federal law mandates that employers allow you to keep your employer group health coverage for up to 18 months after you leave the company. You will need to follow the guidelines as laid out in The Consolidated Omnibus Budget Reconciliation Act (COBRA) to continue the coverage and you will probably have to pay a little more in premiums than you did before because of increased administrative costs for your new COBRA plan. However, it will allow you to maintain health care coverage until you can find another policy.

If your spouse is still working and has coverage, this will probably be the most affordable way for you to maintain coverage. There are, however, more and more insurance companies that are making retiree transition plans available to continue coverage after the COBRA policy is no longer available. You might want to consider Health Savings Accounts or taking a part time job to secure coverage as well. You should search the internet or talk to a local insurance agent for more options.